Litigation

How a Valuation Will Simplify the Dispute Resolution Process:

There is no question that when it comes to disputes, the best result is a fair outcome for all parties involved.

However, dispute resolution can be a daunting process. More often than not, emotions are heightened, making it difficult for the parties involved to work together to reach a fair and just outcome.

Although it may seem more straightforward to dive straight into litigious legal proceedings than to cooperate, under Australian law, there must be attempts to resolve a dispute before seeking any assistance from the courts.

The Legislation Relating to Civil Disputes

The relevant piece of Australian legislation is the Civil Dispute Resolution Act 2011. Essentially the objective of the Act is to resolve civil disputes before commencing any legal court proceedings.

It encourages all parties to take genuine steps to resolve a dispute. Simply put, a simple step is a sincere attempt to resolve the dispute.

Actions such as entering into discussions or negotiations, mediation and sharing information and documents can all be considered simple steps.

What Happens if the Dispute Goes to Court?

Should all attempts at dispute resolution fail, an application can be made for the case to be heard before a court.

The applicant who starts the proceedings must file a “genuine steps statement”. This statement details all the actions that have been taken in an attempt to resolve the dispute. If no steps were taken, the statement must outline the reasons why.

The respondent must then file a “genuine steps statement in reply”, in which they agree or disagree with the applicant’s genuine steps statement.

How can a Property Valuation assist in Dispute Resolution?

If the dispute involves property, one of the first genuine steps to take is to seek the expertise of an independent valuer. They will provide a valuation assessment on the property under dispute, which is an accurate estimate of its current market value without bias toward either party.

It is also not uncommon for each party to seek their valuation assessment in a dispute. In this case, the two valuers will meet without prejudice, working together to find an agreed market value.

Examples of Disputes Involving Property:

1. Disagreement over a deceased estate or will;

Mary left her house to her four children in her will. Three of the beneficiaries want to keep the house, and the fourth wants to sell it. Accordingly, they engaged the services of a property valuer and used the valuation assessment to repurchase the 25% share.

2. Falling out between business partners who co-own property;

David and Matt owned a property development company together, but they decided to part ways due to a personal disagreement.

David decided to sell his shares of the company and the office building that the company owned to Matt. They used a property valuation to determine the value of the building to ensure a fair transaction.

3. Dispute between the local council and a property owner;

Helen and James received their rates notices for their large parcel of land. They felt that the valuation was inaccurate and that their land had been overvalued. As a result, they would have to pay more each quarter for rates.

They decided to dispute the council’s valuation amount and engaged a valuer to do an independent market assessment to validate their claims.

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